Pricing dilemmas in the context of consumer welfare
DOI:
https://doi.org/10.15421/cims.4.318Keywords:
price fairness, consumer well-being, behavioural economics, personalised pricing, price triangle of well-beingAbstract
Purpose. The article explores conflicting approaches to pricing in the context of consumer welfare, in particular assessing the economic, psychological and behavioural aspects of the impact of price on consumers' sense of fairness, satisfaction and happiness. The main objective is to stimulate scientific discussion on the conceptualisation of the category of ‘price welfare’ and to propose a new analytical framework for interdisciplinary analysis. Design / Method / Approach. Within the discussion format, a critical literature review method was used, covering more than 20 peer-reviewed publications over the past two decades. Classic and modern models of price assessment from the perspective of welfare are compared, and the evolution of concepts of price fairness, rationality, and hedonic reactions is analysed. Findings. The article demonstrates that there is no single universal logic for the formation of consumer welfare in the field of pricing. Different types of prices - personalised, fair, differentiated - have an ambiguous impact on emotional, behavioural and economic reactions. A ‘price triangle of welfare’ is proposed, combining market efficiency, psychological perception and social legitimacy of price. Theoretical Implications. The material deepens the understanding of the concepts of price ethics and welfare in the context of the interdisciplinary intersection of economics, behavioural sciences and social philosophy. Practical Implications. The proposed framework can be applied in shaping companies' pricing policies, assessing the impact of personalised pricing on consumers, and providing analytical support for government consumer protection policies. Originality / Value. For the first time, three approaches to pricing have been structurally integrated with a focus on consumer happiness, allowing new hypotheses to be formulated regarding the role of price as a driver of well-being. Research limitations / Future research. The work does not contain its own empirical research, but instead offers conceptual foundations for future quantitative measurement of the impact of price on well-being. It needs to be expanded in the context of regional differences and cross-cultural perceptions of price. Article type. Discussion paper.
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